Strategic Financial Management Part II Finance and Wealth Decisions

Robert Alan Hill Strategic Financial Management: Part II Download free books at Download free eBooks at bookboon.com 2 Robert Alan Hill Strategic Financial Management: Part II Finance & Wealth Decisions Download free eBooks at bookboon.com 3 Strategic Financial Management: Part II: Finance & Wealth Decisions 1 st edition © 2010 Robert Alan Hill & bookboon.com ISBN 978-87-7681-571-4 Download free eBooks at bookboon.com Click on the ad to read more Strategic Financial Management: Part II 4 Contents Contents About the Author 7 Part One: e Finance Decision 8 1 Equity Valuation and the Cost of Capital 9 1.1 e Capitalisation Concept 9 1.2 Single-Period Dividend Valuation 10 1.3 Finite Dividend Valuation 10 1.4 General Dividend Valuation 11 1.5 Constant Dividend Valuation 11 1.6 e Dividend Yield and Corporate Cost of Equity 11 1.7 Dividend Growth and the Cost of Equity 12 1.8 Capital Growth and the Cost of Equity 14 1.9 Growth Estimates and the Cut-O Rate 15 1.10 Earnings Valuation and the Cut-O Rate 17 1.11 Summary and Conclusions 20 1.12 Selected References 20 www.sylvania.com We do not reinvent the wheel we reinvent light. Fascinating lighting offers an infinite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges. An environment in which your expertise is in high demand. Enjoy the supportive working atmosphere within our global group and benefit from international career paths. Implement sustainable ideas in close cooperation with other specialists and contribute to influencing our future. Come and join us in reinventing light every day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Strategic Financial Management: Part II 5 Contents 2 Debt Valuation and the Cost of Capital 21 2.1 Capital Gearing (Leverage): An Introduction 22 2.2 e Value of Debt Capital and Capital Cost 22 2.3 e Tax-Deductibility of Debt 25 2.4 e Impact of Issue Costs 28 2.5 Summary and Conclusions 31 3 Capital Gearing and the Cost of Capital 33 3.1 e Weighted Average Cost of Capital (WACC) 33 3.2 WACC Assumptions 35 3.3 e Real-World Problems of WACC Estimation 37 3.4 Summary and Conclusions 41 3.5 Selected Reference 42 360° thinking . © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers